OptionsHouse

Options Trading News

March 20, 2013  Wed 8:32 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES
Do you think that the Fed is going to back away from its bond-buying program today? Do you believe that the Russians are going to pull out every red cent from Cyprus tomorrow? (The deposits will already be taxed before they take them out, so they will pull out AFTER the tax.) If your answer is yes, then right now is the time to sell.

Do I think you should do it? I am cognizant that when the European Central Bank says it will provide liquidity it recognizes that the Cypriot banks will be nationalized almost immediately and will be wound down with tremendous losses to, yes, the ECB. That's the bearish scenario that makes the Fed irrelevant.

TheStreet.com logoI think that the ECB recognized--as did the International Monetary Fund when it came up with this plan--that every penny would come out of the banks when they open and that they have some contingency plan. But if you think they don't have one, don't just stand there, obey the bears and roll out.

I reiterate that I don't like the tape. I reiterate that I don't like that we have seen parabolic moves, and I do worry about Cyprus and the Fed.

But I think that when we look back, it might not be the watershed moment or two that people tell me I should be more fearful of. As stupid as the policy makers in Europe are, can they reach the same conclusions as the bears and act to save the situation and Uncle Ben?

I have trusted him for four years, and I am not backing away now.
Share this article with your friends


Related Stories

SPX

Stocks remain lower after job data

September 4, 2015

The government reported that 173,000 jobs were added in August, below the consensus estimate of 210,000. The unemployment rate came in at 5.1 percent off the estimated 5.2 percent.

SPX

Non-farm payrolls lead calendar

September 4, 2015

Economists estimate the U.S. economy added 210,000 jobs last month, equal to July's gain. The unemployment rate is seen edging down to 5.2 percent from 5.3 percent.

SPX

Stocks higher amid busy calendar

September 3, 2015

S&P 500 futures are up 0.4 percent, while most of Europe has risen about 1 percent. Mumbai and Hong Kong led moves in Asia, up 1 percent and down 1 percent respectively.

SPX

ECB, job claims, ISM services due

September 3, 2015

The European Central Bank leads a busy economic calendar today. Policy-makers in Frankfurt issue their statement at 7:45 a.m. ET, followed by a press conference 45 minutes later.

SPX

Stocks hold gains after ADP report

September 2, 2015

S&P 500 futures remained up 0.8 percent after private-sector job growth missed estimates by a narrow margin. Europe rose fractionally and Asia was unusually calm.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: On Options Strategies in General

Before we hop into the different option strategies, I have a few thoughts for you to remember concerning the strategies and our use of them.

View more education articles »